(Japan, 2nd) According to an Asahi Shimbun poll, Japan's Prime Minister Sanae Takai's Liberal Democratic Party (LDP) is very likely to achieve a landslide victory in Sunday's (Feb 8) House of Representatives election.
Reuters reports that the poll published by Asahi Shimbun on Sunday (the 1st) indicates that the LDP is likely to win a majority of more than 233 seats out of the 465 seats in the House of Representatives, surpassing its current 198 seats.
The poll also shows that the total number of seats won by the LDP and its ruling coalition partner Ishin Party could reach as many as 300.
If the LDP performs strongly in the election, it will surely consolidate Sanae Takai's grip over the party and provide public support for her expansionary fiscal policies. However, this may also heighten concerns about Japan's fiscal situation and push up bond yields.
Keisuke Tsuruta, Senior Bond Strategist at Mitsubishi UFJ Morgan Stanley Securities, said: “If the LDP wins a sweeping victory, it will further consolidate Sanae Takai’s power. Takai is more likely to implement her active fiscal policies, including lowering the consumption tax.”
According to Asahi Shimbun's poll from the 1st, Japan’s largest opposition party, the Centrist Reform Alliance, may lose half of its original 167 seats.
The Centrist Reform Alliance is made up of the opposition Constitutional Democratic Party and Komeito, with the latter having long been the LDP’s ruling coalition partner.